TeamViewer warned that its 2025 revenue will likely fall to the lower end of its prior forecast, citing weaker-than-expected performance from 1E, the IT management firm it acquired in December 2024. The company now expects revenue between €778 million and €797 million, compared with earlier projections of up to €929 million.
The slowdown stems from underperformance at 1E, whose products detect and resolve IT issues. The unit’s annual recurring revenue missed expectations, falling 8% in the third quarter due to macroeconomic uncertainty and slow decision-making among U.S. clients, its largest market. TeamViewer’s overall revenue rose 4% on a constant currency basis.
CFO Michael Wilkens said that while the company is working on a turnaround strategy for 1E, results will “take time to materialize,” weighing on short-term growth. TeamViewer has also reduced its ARR forecast to €780–€800 million from €815–€840 million, and now expects 2026 revenue growth of 2%–6%, down from earlier estimates.
To cushion the revenue hit, TeamViewer announced further cost-saving measures and raised its 2025 adjusted EBITDA margin outlook to 44%, up from 43%, reflecting tight cost control. The company remains focused on improving profitability while navigating weak IT spending in Europe and the United States.
